Your guide to selling internationally on Amazon in Canada

Have you ever daydreamed about your products making a name for themselves across the globe? Thanks to Amazon’s vast international marketplace, there are countless opportunities for sellers across the world to do that. The total sales of Canadian sellers, specifically, increased by more than 20% year over year in 2021, making it a lucrative country to consider.¹

And while entering international sales can be intimidating, we’re here to help you confidently transcend borders. We’ll show you how you can pair Wise, an international money services business (MSB), with Amazon to grow your business globally and what you need to know about selling internationally on Amazon in Canada.

Table of contents

Things to note when selling internationally on Amazon in Canada Selling on Amazon from Canada in other countries How to sell on Amazon in Canada from other countries Getting paid from Amazon in CAD and other currencies What are the fees and costs for selling on Amazon in Canada? How to manage orders and customer relations Fulfillment options and what they mean Self-fulfillment Amazon’s fulfillment option After-sales services

Things to note when selling internationally on Amazon in Canada

Selling internationally on Amazon is made easy with Amazon Global Selling. Sellers can list their items on 1 of 21 stores in Europe, the Middle East, Asia-Pacific, and America.² Luckily, you won’t need a country-specific registered business or bank account to get started. For sellers who want to venture into the Canadian marketplace, you’ll need to head over to the “Sell Globally” dashboard so you can select which Amazon stores you want to be active in.

Of course, while Amazon streamlines the global selling process, there are a few things you’ll want to take note of, including:

• Taxes and regulations
• Shipping and fulfilling - will you fulfill international orders on your own or use Fulfillment by Amazon?
• Selling and subscription fees
• Customer support and returns for international sales

Understanding the ins and outs of these components relating to international selling will help you navigate the market. With every country coming with its own set of rules and regulations, international returns to consider, and all the logistics and shipping to get the hang of, there will likely be a learning curve when you expand into other countries.

Selling on Amazon from Canada in other countries

Amazon opens the door to an e-commerce experience that lets you benefit from a big brand. That means not having to invest in your own marketing and advertising to provide exposure to your store and products.

There are 10 online marketplaces (sites) operated by Amazon worldwide, which allow you to grow your business regardless of where your business is physically located. These include

• United States
• Canada
• Mexico
• Germany
• United Kingdom
• France
• Italy
• Spain
• Japan
• China and
• India

Note: If you’re a seller based outside of India or China, you won’t be able to sell to these countries.³

But international sales come with international considerations, which could include things like repositioning your marketing and copy to meet the needs of certain customers.

It might also mean modifying your products or considering whether or not your product could even be sold in a specific country. For example, there might be power plug differences, different standard sizing and measurements, and the need for localized descriptions and manuals.

Each country also has specific cultural values and consumer behaviour, which can completely change how you sell. You might need to align your message and references to suit the local language or reposition your product in general.

How to sell on Amazon in Canada from other countries

If you’re ready to start selling in Canada from your country of origin, here are a few simple steps to get started:

1. Choose a monthly subscription plan – To launch your store, choose either the Individual (if you’re selling fewer than 30 items per month) or Professional plan (more than 30 items per month).⁴
2. Consider the fee schedules – Amazon typically charges per-item fees, selling fees, referral fees, closing fees, and high-volume listing fees.⁵ You’ll also want to keep Canada’s federal and provincial sales taxes in mind.
3. Create listings – If you’re based in the U.S. or Mexico, you can register for a North American Unified Account that lets sellers switch within Seller Central between Amazon.com, Amazon.ca, and Amazon.com.mx seller tools.⁶ With this account, you can simply transfer your U.S. listings to the Canadian marketplace through the Catalog tab. If you aren’t in North America, you’ll have to create new listings from scratch.
4. Choose your fulfillment method – Decide how you’ll get your products to your customers, either by fulfilling orders yourself or using Fulfillment by Amazon (FBA).⁷ You’ll also decide which countries you’ll ship to and set your shipping rates.

Getting paid from Amazon in CAD and other currencies

Once the orders start flowing in, it’s time to get paid. But if you’re selling in another country, how do you navigate currency conversion? Well, there are three ways to do so, including using Amazon’s own system. Let’s take a look.

• Amazon Currency Converter for Sellers (ACCS) – With the ACCS, there’s no need to manually transfer funds – just add your local bank account to Seller Central, and Amazon will use the exchange rate supplied by their third-party service provider. Unfortunately, there is a volume-based fee and a markup on the exchange rate.^8,9
• Open a bank account in the selling country – You can also choose to take the currency as is, but that means you’ll need a bank account in the selling country. This way, you’ll avoid losing money via hidden fees and marked-up exchange rates. Unfortunately, this would also come with residency related constraints.
• Use a multi-currency account – With Wise, you can open a multi-currency account that can provide account details in multiple currencies, such as CAD, USD, EUR, GBP, AUD, NZD, and more.¹⁰ You can then receive money like a local or get the money converted into your local currency at the mid-market rate and use your savings to grow your business.¹¹ Wise lets you do all of this from the comfort of your home!

Please see the [Terms of Use](https://wise.com/en/legal/terms-and-conditions) for your region.

What are the fees and costs for selling on Amazon in Canada?

Selling internationally on Amazon can be an exciting feat, but there are a couple of potential costs that you need to be aware of. We’ve touched on some of these previously, but here’s a bit more detail on pricing.

Selling plans – There are two selling plans available: the Individual plan for CA$ 1.49/item sold and the Professional plan for CA$ 29.99/month. This allows for some flexibility for those who either sell a low amount of units or a high amount of units.

Category referral fees – Referral fees are a percentage of the total price of every item sold, which includes the item price, shipping cost, and any gift-wrapping charges. These are determined by the category your product is in.¹²

Category	Referral Fee Percentage12	Minimum Referral Fee12
Amazon Device Accessories	45%	CA$ 0.40
Automotive and Powersports	12%	CA$ 0.40
Baby Products Beauty, Health and Personal Care	8% for products with a total sales price of CA$ 15 or less 15% for products with a total sales price of more than CA$ 15	CA$ 0.40
Grocery and Gourmet	8% for products with a total sales price of CA$ 20 or less 15% for products with a total sales price of more than CA$ 20	None
Electronic Accessories	15% for the portion of the total sales price up to CA$ 100 8% for any portion of the total sales price over CA$ 100	CA$ 0.40
Full-Size Appliances	15% for the portion of the total sales price up to CA$ 300 8% for any portion of the total sales price over CA$ 300	CA$ 0.40
Furniture	15% for the portion of the total sales price up to CA$ 300 10% for any portion of the total sales price over CA$ 300	CA$ 0.40
Jewelry	20% for the portion of the total sales price up to CA$ 325 5% for any portion of the total sales price over CA$ 325	CA$ 0.40
Watches	16% for the portion of the total sales price up to CA$ 1500 3% for any portion of the total sales price over CA$ 1500	CA$ 0.40
Base Equipment Power Tools Business, Industrial, and Scientific Supplies	12%	CA$ 0.40
Clothing and Accessories Eyewear	17%	CA$ 0.40
Computers Consumer Electronics Video Game Consoles	8%	CA$ 0.40
Tires	10%	CA$ 0.40
Extended warranties, protection plans, and service contracts	96%	CA$ 0.40
Backpacks, Handbags, and Luggage Compact Appliances Footwear Home and Kitchen Lawn and Garden Mattresses Media Musical Instruments and AV Production Office Products Pet Products Sports and Outdoors Tools and Home Improvement Toys and Games Video Games and Gaming Accessories Everything Else	15%	CA$ 0.40

There are also applicable fulfilment fees, which we’ll dive into in the next section.

How to manage orders and customer relations

Thanks to integrated e-commerce tools, managing orders and keeping up with customer relations is less of a chore and more of a smooth process – if you keep a close watch on it all.

Fulfillment options and what they mean

There are two types of fulfillment options when you’re selling on Amazon – self-fulfillment and Amazon’s FBA option.

Self-fulfillment

If you prefer to handle all the storage, packing, and shipping yourself, self-fulfilment could be the right choice for you. It involves:

• maintaining stock levels and
• keeping an eye on inventory,
• packing and processing the order,
• shipping through your preferred courier service, and
• managing any customer inquiries or complaints.

There’s no question that self-fulfillment can involve more hands-on work, but it can offer you a bit more control and potential cost savings, especially if you’re a smaller business.

Amazon’s fulfillment option

With Amazon’s Fulfillment by Amazon program, you’ll have Amazon take care of the logistics side of your business while you focus on other important tasks. You’ll ship your inventory to Amazon’s Fulfillment Centers, and Amazon will handle the rest – storage, packaging, shipping, and customer service, including returns!

After-sales services

Even after the sale is made, the services you provide afterwards will be important for building a successful e-commerce business and maintaining your seller’s reputation. Customer reviews can make or break your business, where positive reviews can create trust and negative reviews can drive away customers. As there’s always a possibility for negative reviews to come up, you should always try to respond and rectify the issue as best as you can.

When it comes to refunds, ensuring you have a clear, fair return policy is key to a customer who will buy again. That’s where Wise can be a real lifesaver, as it can be used to manage refunds in your customer’s local currency. This can make the process much more transparent and straightforward and provide another incentive for people to purchase from you over a competitor.

So, whether you’re venturing into international selling for the first time or just looking to expand your existing e-commerce footprint, consider everything from how to sell effectively to post-sales customer service!

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Sources:

1 - Sell on Amazon CA
2 - Amazon Seller Central - Help
3 - Amazon Seller Central - Help
4 - Amazon CA pricing
5 - Amazon seller Central help
6 - Amazon North American marketplace handbook
7 - Fulfillment by Amazon
8 - Amazon currency converter
9 - Amazon currency converter - exchange rates
10 - Wise Business
11 - Mid market rate with Wise
12 - Amazon pricing

Sources verified on 29 November 2023